Which fiduciary duty survives the termination of an agency agreement?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

Confidentiality is the fiduciary duty that survives the termination of an agency agreement. This means that even after the agency relationship has ended, the agent is still obligated to protect any confidential information obtained during the course of the relationship. This duty is crucial in maintaining the trust and integrity of the professional relationship, as the disclosure of such information could harm the principal or violate privacy agreements.

Other fiduciary duties, such as disclosure, accountability, and loyalty, typically end with the termination of the agency. Disclosure pertains to providing important information to the principal while the agency is active, and accountability relates to the agent being responsible for handling the principal's assets or funds during the relationship. Loyalty, which requires the agent to act in the best interests of the principal, also ceases once the agency relationship is dissolved. However, the duty of confidentiality is distinct because it continues to protect the principal's sensitive information beyond the scope of the relationship, highlighting the importance of trust and confidentiality in professional dealings.

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